WRITTEN QUESTION No. 1729/97 by Esko SEPPÄNEN to the Commission. Free economic area across the Finnish-Russian border to increase trade between the EU and Russia
Date: 1997-05-23
Institutions: European Parliament, SEPPAENEN
Subjects: Finland, Russia, competition, free zone, frontier region, market economy, trading operation

10. 2. 98

EN

Official Journal of the European Communities

C 45/91

While the quantity of cheese exports to Ceuta and Mellila may appear relatively small compared to the total
quantity  of  Community  cheese  exported  with  subsidies  it  represents  a  significant  part  of  the  annual  volume
reduction  required  to  respect  the  General  agreement  on  tariffs  and  trade  (GATT)  limits.  For  that  reason  the
Commission considers that the fixing of a zero refund for Ceuta and Mellila makes a significant contribution to
achieving the Uruguay round objectives.

2.
The  Commission  believes  that  the  reductions  in  refunds  for  liquid  milk  exports  will  not  result  in  a
substantial drop in exports of these products to Ceuta and Melilla but will reduce the pressure on demand for
export licences for the other milk products category. The exports from the Community to Ceuta and Mellila in
1996 amounted to about 20 000 tonnes.

3.
The Commission has never considered its export refund policy as having a social dimension. It also recalls
that the gradual reduction of export subsidies (worldwide) that was agreed in the Uruguay Round, will bring
substantial  benefits  to  consumers.  It  therefore  maintains  its  position  that  the  refunds  for  cheese  and  milk  for
Ceuta and Melilla, as for certain other countries, should remain unchanged.

(98/C 45/110)

WRITTEN QUESTION E-1729/97

by Esko Seppa¤nen (GUE/NGL) to the Commission

(23 May 1997)

Subject: Free economic area across the Finnish-Russian border to increase trade between the EU and Russia

One  of  the  biggest  challenges  for  the  future  of  Europe  is  to  find  ways  of  fostering  the  market  economy  and
economic stability in Russia.

Finland is the only EU Member State which has a common border with Russia. It would be in the EU(cid:146)s own
interests to exploit this fact, which is important from the point of view of trade strategy, by promoting financially
trade between the EU and Russia and the development of cooperation in the Finnish-Russian border region.

The EU has previously approved the establishment of many special tax-free areas, including some which are far
from its external borders.

Does  the  Commission  believe  that  it  would  be  justified  to  establish  a  special  free  economic  area  across  the
Finnish-Russian border to increase trade and develop the market economy in Russia?

Answer given by Mr Van den Broek on behalf of the Commission

(11 July 1997)

Like  the  Honourable  Member,  the  Commission  welcomes  the  developments  in  Russia  towards  a  market
economy.

The  Commission  is  of  the  opinion  that  the  increase  in  trade  between  Finland  and  Russia  in  recent  years
contributes considerably to economic stabilisation in the northern part of Russia.

However, a range of difficulties continue on the Russian side of the border between Finland and Russia. Russia is
still in a process of adaptation to international trade procedures. Should the Commission be informed of concrete
plans  to  create  a  special  free-tax  area  at  the  border,  it  would  forthwith  carefully  examine  the  possible
consequences of such plans. The Commission points out that the creation of such a zone could lead to trade
distortion and act against the objective of normalisation of trade activities between the Community and Russia.

The  Commission  will  continue  to  monitor  progress  and  under  various  TACIS  projects  it  supports  action  to
improve the situation at the border region in such fields as customs training and construction of border crossings.